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Business, 29.07.2019 22:30 Pattondestiny

Roger harkel, ceo of bestafer inc., sought to raise $5 million in a private placement of equity in his early stage dairy products company. harkel conservatively projected net income of $5 million in year five, and knew that comparable companies traded at a price earnings ratio of 20x. a. what share of the company would a venture capitalist require today if her required rate of return was 50%? what if her required rate of return was only 30%?

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